154) choose the correct answer:1.Producer surplus is the area above the supply curve and below the price. 2.The major advantage of allowing free markets to allocate resources is that the outcome of the allocati

155) choose the correct answer:1.The two main types of market failure are market power and externalities. 2.Externalities are side effects, such as pollution, that are not taken into account by the buyers and sellers

156) Consumer surplus is the area

157) A buyer’s willingness to pay is that buyer’s

158) If a buyer’s willingness to pay for a new Honda is Rs.20,000 and she is able to actually buy it for Rs.18,000, her consumer surplus is